M-Payments 2007-2012: Commerce and banking in the mobile world

Table of Contents

1. Introduction

• 1.1 M-commerce
  • Chart 1.1: Global m-commerce revenue forecast 2004-2008
• 1.2 Mobile payments defined
  • 1.2.1 Japan leads the field
    • Chart 1.2: Mobile phone household penetration - selected countries 2006
  • 1.2.2 Reducing reliance on payment cards?
    • Chart 1.3: US commercial credit card spending forecast 2004-2010
  • 1.2.3 Mobile payments systems
    • Image 1.1: Mobile wallet network map
• 1.3 Applications of mobile payments
  • 1.3.1 Forms of m-commerce
    • Chart 1.4: The mobile payment landscape
  • 1.3.2 Mobile banking
    • 1.3.2.1 Mobile banking in the developing world
    • 1.3.2.2 The potential for mobile banking from network operators
• 1.4 The advantages & disadvantages of mobile payments
  • Image 1.2: The e-payment ‘four corner’ model
  • 1.4.1 Benefits
    • 1.4.1.1 Consumer benefits
    • 1.4.1.2 Benefits to retailers
    • 1.4.1.3 Benefits to technology manufacturers
    • 1.4.1.4 Benefits to network operators
  • 1.4.2 Drawbacks
  • 1.4.3 Retailer and customer adoption - the chicken and egg problem.
• 1.5 Security concerns
  • 1.5.1 Biometric protection
  • 1.5.2 Security is vital to m-commerce adoption
• 1.6 M-payment technologies
  • Chart 1.5: M-payment technologies comparison.
  • 1.6.1 Near Field Communication (NFC)
    • 1.6.1.1 The case for NFC in m-commerce
  • 1.6.2 Radio-frequency identification (RFID)
    • Image 1.3: An RFID tag
    • 1.6.2.1 RFID in m-payments
      • Image 1.4: Nokia 3220 with RFID chip
    • 1.6.2.2 Big Brother - privacy concerns regarding RFID
  • 1.6.3 Bluetooth
    • 1.6.3.1 Bluetooth in m-payments
    • 1.6.3.2 Security concerns - Is Bluetooth suited to m-commerce?
      • 1.6.3.2.1 Hacking Bluetooth
  • 1.6.4 IrDA and IrFM standards
    • 1.6.4.1 IrDA security
  • 1.6.5 FeliCa
    • 1.6.5.1 Mobile FeliCa
  • 1.6.6 Barcode scanning
    • Chart 1.6: Mobile handset features described as highly desirable in Japan
• 1.7 Prepaid payments

2. The mobile wallet - Card-in-phone technologies

• 2.1.1 Visa
  • Chart 2.1: Visa cards issued in Europe 2000-2006
• 2.1.1 Visa' s payWave
• 2.1.2 Visa in m-commerce
  • Chart 2.2: Contactless payment growth forecast 2006-2011
• 2.1.3 Visa & Qualcomm
• 2.2 MasterCard
  • Chart 2.3: MasterCards issued globally Q1 2001 - Q1 2007
  • 2.2.1 MasterCard PayPass
    • 2.2.1.1 The spread of PayPass
    • 2.2.1.2 Will PayPass prove a success?
      • Chart 2.4: MasterCard PayPass rollout forecast 2007-2012
  • 2.2.2 MasterCard and security in m-commerce
  • 2.2.3 Visa and MasterCard form the Mobile Payment Forum
• 2.3 JPMorgan Chase
  • 2.3.1 JPMorgan' s blink
    • 2.3.1.1 Advantages of blink for customers and merchants
  • 2.3.2 Confusion in the US contactless market
    • Table 2.1: Contactless plans and activity in the US, 2006
  • 2.3.3 TCH and FSTC m-commerce initiative - working towards unity
  • 2.3.4 The growth of contactless payments in the US
    • Chart 2.5: Contactless payment card forecast in US 2007-2012
• 2.4 Citi and Nokia' s New York trial
  • 2.4.1 Can m-payments break the chip-and-pin habit?
• 2.5 SEMOPS
  • 2.5.1 SEMOPS - a new concept in m-payments?
  • 2.5.2 Will SEMOPS become a major player?
• 2.6 Japan - NTT DoCoMo' s iD mobile wallet
  • 2.6.1 DoCoMo' s iappli
  • 2.6.2 Japan shows the enormous potential for m-payments
    • Chart 2.6: NTT DoCoMo iD phone forecast: Japan 2007-2012

3. Over-the-air payment systems

• 3.1. The Internet retail market
  • Chart 3.1: UK Internet retail growth 2000-2010
  • Chart 3.2: Global Internet retail growth forecast 2007-2012
• 3.2 PayPal Mobile
  • 3.2.1 Where does PayPal fit into the m-payment model?
  • 3.2.2 PayPal and the mobile user
• 3.3 Google Checkout
  • 3.3.1 eBay vs. Google - the online giants clash
  • 3.3.2 Checkout goes mobile
• 3.4 TextPayMe
  • 3.4.1 Will TextPayMe survive following the launch of PayPal Mobile?
• 3.5 Obopay
  • 3.5.1 Obopay and the future of OTA payments
    • Table 3.1: Selected OTA m-payments services compared
• 3.6 Valista
  • 3.6.1 Valista and w-HA - an m-payments success story?
  • 3.6.2 Verrus
  • 3.6.3 Verrus - Parking in London
  • 3.6.4 Playing ball - Verrus and Verizon at the game

4. Subscriber billing and micropayments

• Chart 4.1: Global contactless payment card shipment forecast 2007-2012
• 4.1 PayForIt
  • 4.1.1 PayForIt in the m-payments landscape
• 4.2 OneBip
  • 4.2.1 OneBip in the emerging European m-payment market
• 4.3 SimPay
  • 4.3.1 Too much too soon? Lessons learned from SimPay
• 4.4 Danal - integrating m-payments in the Far East
  • 4.4.1 Subscriber billing shows strong growth in Asia
• 4.5 Mobile Suica - Japan' s micropayment Oyster
  • 4.5.1 Suica - Closest to convergence?
• 4.6 M-ticketing - off the rails
  • 4.6.1 The O2 Wireless festival offers m-tickets
  • 4.6.2 Nokia creates Live Nation - priority m-ticketing
  • 4.6.3 M-ticketing takes flight
• 4.7 Happy meal - Micropayments at Mcdonald' s

5 Mobile banking

• 5.1 Mobile banking defined
  • 5.1.1 M-banking versus the mobile bank
  • 5.1.2 M-banking and the ‘cool’ factor
    • Chart 5.1: US m-banking household penetration forecast 2007-2010
• 5.2 HSBC and First Direct
  • 5.2.1 Downloaded or preloaded?
• 5.3 Alliance & Leicester
• 5.4 US: AT&T & Firethorn
  • 5.4.1 Encouraging Results from AT&T' s BancorpSouth trial
    • 5.4.1.1 Reducing reliance on staff-based services
• 5.5 M-banking usage in South Africa
  • Chart 5.2: FNB m-banking transactions by volume
  • Chart 5.3: FNB m-banking transactions by value
• 5.6 Citi
  • 5.6.1 Japan - KDDI and Mitsubishi-Tokyo-UFJ launch New Bank
• 5.8 Prepaid - Access to mobile banking for all
  • 5.8.1 Prepaid spending - a growing market
    • Chart 5.4: Global prepaid market spend forecast 2010
    • Chart 5.5: Prepaid market spend forecast 2010 - selected European countries
    • Chart 5.6: Prepaid domestic market share forecast 2010 - selected European countries
  • 5.8.2 T-Weed - prepaid in the USA
• 5.9 The mobile phone - a lifeline for world' s poor
  • 5.9.1 Mobile banking in the developing world
  • 5.9.2 Vodafone calls for regulation in the developing world
• 5.10 Person-to-person payments
  • 5.10.1 Gemalto - Europe' s first SMS person-to-person service
  • 5.10.2 Citi' s person-to-person service
• 5.11 Money transfer
  • 5.11.1 Safaricom Kenya and M-Pesa
  • 5.11.2 Security & money laundering

6 Standardisation

• 6.1 Is technology diversification a barrier to development?
• 6.2 Security Issues
  • Chart 6.1: Reasons for increased sense of security on online banking web sites
  • 6.2.1 The GSMA secure mobile payments standard
    • 6.2.1.1 GSMA' s Korean m-payments trial
    • 6.2.1.2 Handset manufacturers build UICC support
• 6.3 User identification security
  • 6.3.1 IST' s SecurePhone
  • 6.3.2 AuthenTec and Hitachi' s fingerprint sensor
    • Image 6.1: Authentec' s fingerprint scanner
• 6.4 Standardisation as an achievable goal

7 Forecasts & conclusions

• Chart 7.1: M-commerce revenue forecast 2007-2012 (excluding digital content)
• Table 7.1: Potential revenues generated by operators from m-payment 2007-2012 ($ billions)
• 7.1 Benefits for the consumer
  • 7.1.1 Drawbacks for the consumer
  • 7.1.2 M-payments and business expenses - the billion pound black hole
• 7.2 Benefits for retailers and banks
  • 7.2.1 Drawbacks for retailers and banks
    • Chart 7.2: US online banking growth forecast 2007-2012
  • 7.2.2 The growth of contactless card payments
    • Chart 7.3: Global contactless card forecast 2007-2012
• 7.3 Benefits for network operators
  • 7.3.1 Drawbacks for network operators
• 7.4 Technology and security standardisation
  • 7.4.1 NFC as the future of m-commerce
    • Chart 7.4: NFC enabled mobile handset forecast 2007-2012

Organisations Listed

• 7-Eleven
• A1 Bank
• Abbey Group
• Agilent
• Alliance & Leicester
• Alltel
• Amadeus
• American Express
• America Online
• AOL
• Arby' s
• AT&T
• au
• AuthenTec
• Barclays
• BancorpSouth
• Bank of America
• Banksys
• Base
• BB&T
• Bharti Telesoft
• Boater' s World
• Bouygues Telecom
• British Airways
• Broadcom
• Bull Hungary
• Burger King
• Cellfire
• CheckFree
• Chiltern Railways
• China Mobile
• Citi
• Citizen' s Bank
• Coca-Cola
• Columbia Card Services
• Comerica
• Compaq
• Cricket
• CrossCheck
• CSAM
• CVS/Caremark
• Danal
• Deloitte & Touche
• Deutsche Bank
• Diners Club
• Dolby
• dotMobi
• eBay
• Ecrio
• Extended Systems
• Firethorn
• First Direct
• First National Bank (FNB)
• Fornax
• France Telecom
• Fraunhofer FOKUS
• Frontier Economics
• Garanti Bank
• Gemalto
• Globe Telecom
• Google
• Grameen Bank
• Groupe d' Economie Mondiale
• GTECH
• Harex InfoTech
• HBOS
• Helio
• Hewlett-Packard
• Hitachi
• Hong Kong CSL
• HSBC
• IDTechEx
• In2M
• Infineon
• Ingenico
• Intrasoft
• IST
• JCB
• JPMorgan Chase
• KALL
• KDDI
• Kereskedelmi es Hitelbank (Commercial and Credit Bank Hungary)
• KeyBank
• KPN
• KTF
• Kyocera
• LaSalle Bank
• LG Electronics
• Libri
• LINK
• Link Evolution
• Lloyds TSB
• MasterCard
• Maxis Communications
• MBlox
• MBNA
• Mcdonald' s
• MCI
• Meijer
• Mellon
• mFoundry
• Microsoft
• Mitsubishi-Tokyo-UFJ
• Mizuho Bank
• MoBeam
• Mobilkom Austria
• MobiPay
• Money Gram
• Monitise
• Morgan Stanley
• Motorola
• Movistar
• MP3NY
• M-Pesa
• MTC-Vodafone
• MTN
• National Bank of Kuwait
• National City
• NatWest
• NEC
• New Bank (Shinginko)
• Nokia
• Nova Bank
• Novalog
• NTT DoCoMo
• NXP Semiconductors
• O2
• Obopay
• OneBip
• Oracle
• Orange
• Oyster
• Palm
• Panasonic
• Pantech
• PayCircle
• PayForIt
• PayPal
• Personal Solutions
• Piraeus Bank
• PNC
• Profitrade
• QUALCOMM
• Raiffeisen Bank
• Regal Entertainment
• Regions Financial
• Ritz Camera
• Rogers Wireless
• Safaricom
• SafePay Systems
• Safeway
• Samsung
• SFR
• Sheetz
• SimPay
• SingTel
• SK Telecom
• Smart Communications
• Smart SMS
• Societe Generale
• Softbank
• Sony
• Sprint Nextel
• SSB
• Starbucks
• Suica
• Sumitomo Mitsui Bank
• SunTrust
• Symbian
• Telecom Italia (TIM)
• Telefonica Moviles Espama
• Telenor
• TeliaSonera
• Tesco
• Texas Instruments
• TextPayMe
• T-Mobile
• Toshiba TEC
• Turkcell
• Unify Media Group
• US Bank
• Valista
• VH-1
• Virgin
• Verifone
• Verizon
• Verrus
• Vimpelcom
• Visa
• ViVOtech
• Vodafone
• Vodafone-Panafon
• Wachovia
• Walgreen
• Wawa
• Wells Fargo
• Westel Mobil
• Western Union
• w-HA
• Wikipedia
• Wind
• WIT-Software
• Xringer
• YourRail
• Zagat
• ZiLOG